Hilbert Group Acquires Enigma Nordic in a $32 Million Crypto Trading Deal

Hilbert Group Acquires Enigma Nordic in a $32M Crypto Trading Deal

Summary: Hilbert Group, a Swedish investment firm specializing in algorithmic cryptocurrency trading, has completed the acquisition of the high-frequency trading platform Enigma Nordic for $32 million. This strategic move aims to enhance Hilbert's capabilities in the cryptocurrency market.

Key Takeaways:

Hilbert Group has acquired Enigma Nordic for $32 million to boost its cryptocurrency trading operations.
Enigma reported a trading volume of $5.4 billion and a Sharpe ratio exceeding 3.0.
The acquisition includes performance-based payouts that require $40 million in net income to unlock the full earn-out.

This acquisition grants Hilbert complete control over Enigma’s proprietary trading system, which employs market-neutral strategies across various global digital asset exchanges.

According to a joint announcement, the Enigma platform is structured to capitalize on short-term price inefficiencies rather than predicting market trends. This approach has gained popularity as the cryptocurrency market matures.

Enigma Reports Significant Trading Volume but Questions on Profitability Remain

Enigma has recorded over 50 billion Swedish krona (approximately $5.4 billion) in trading volume in 2025, boasting a Sharpe ratio above 3.0—a notable achievement for scalable, market-neutral strategies within the digital asset space.

However, while high trading volumes indicate robust activity, they do not automatically ensure profitability. High-frequency trading methods usually operate on slim margins and can suffer from "alpha decay," a phenomenon where returns diminish as capital and competition grow.

Hilbert appears to have mitigated these risks through the deal's structure. The arrangement includes $7.5 million in newly issued Hilbert shares upon closing and potential performance-based earn-outs of up to $17.5 million.

Of that earn-out, $10 million will be disbursed in cash, while the remaining amount will be paid in shares. To access the full earn-out, Enigma must achieve $40 million in net income.

The shares allocated to Enigma’s founders will be locked for three years, with provisions to reclaim them if performance benchmarks are not met.

Hilbert CEO Barnali Biswal stated that this acquisition enhances the firm’s capacity to serve institutional investors looking for systematic exposures in cryptocurrency markets.

“Enigma provides advanced technology and an entrepreneurial team that has a proven record of scaling businesses,” said Biswal. “Their market-neutral strategies perfectly complement our quantitative platform, expanding the variety of products we can offer.”

The Growing Shift Toward Institutional and Market-Neutral Cryptocurrency Trading

This acquisition coincides with a trend in the cryptocurrency sector where professional investors, including hedge funds and asset managers, are increasingly opting for data-driven strategies rather than speculative trading.

Market-neutral strategies, which seek to minimize exposure to general price volatility, have gained popularity amidst increasing market fluctuations and regulatory oversight.

Hilbert plans to incorporate Enigma’s platform into its hedge fund offerings and proprietary trading operations, with new investment products anticipated to launch soon.

Last year, Hilbert Capital initiated management of a bitcoin-denominated hedge fund with an initial investment of $200 million. Enigma was co-founded by entrepreneurs Andreas Friis and Jonas Söderqvist, who are also known for successfully building and listing the digital marketing firm Speqta.

Recently, Xapo Bank and Hilbert Capital announced an initiative to create a $200 million Bitcoin-denominated hedge fund.